What to Look Out for in Biden’s Second State of the Union Speech

tweet at 1:14pm: POWELL: IF CONTINUE TO GET STRONG LABOR MARKET REPORTS, OR HIGHER INFLATION REPORTS, MAY NEED TO HIKE RATES MORE THAN IS PRICED IN tweet at 1:17pm: FED'S POWELL Q&A/ECW: REPEATS, HAVE A SIGNIFICANT PERIOD OF TIME BEFORE INFLATION DECLINES TO TARGET VS MKT VIEW THAT IT'S GOING TO HAPPEN FAST #Powell #federalreserve tweet at 1:18pm: Fed's Powell: - Will Need to Do More Rate Increases, Then Look Around and See if It's Enough - Price Stability is "Enormously Beneficial" to the Public, Allows Sustainably Strong Labor Mkt - Recently Immigration Has Turned Up Again, May Mean Somewhat Less Pressure in Labor Mkts tweet at 1:19pm: POWELL: EXCHANGE RATE POLICY RESTS WITH TREASURY, NOT THE FED - https://t.co/wXVagA44VK

tweet at 1:02pm: FED'S POWELL: WE NEED TO BE PATIENT, NOT SEEING DISINFLATION IN SERVICES SECTOR. tweet at 1:03pm: POWELL: U.S. IS ON AN UNSUSTAINABLE FISCAL PATH, THAT WILL NEED TO BE ADDRESSED tweet at 1:06pm: Fed’s Powell: - U.S. "Just at the Beginning" of the Disinflation Process -Not Seeing Disinflation in Housing Yet, but Expect That to Happen in the 2H of This Year -Worry Most About When Disinflation Will Take Hold in the Larger Services Sector, Also Concerned About Outside Events tweet at 1:12pm: Fed's Powell: - Reopening Of China, Ukraine War Affect Inflation Path - Fed Wants to Be Transparent, Not Surprise Markets by Decisions - To Get Inflation Down, Most Analysts Would Say Need Some Softening in Labor Market Conditions tweet at 1:13pm: Fed's Powell: - This Cycle May Be Different; Labor Market Remains Strong While Wages Are Moderating - Likely to See Some Softening in Labor Market Conditions - Wage Increases Have Come Down to a Level That's Closer to Sustainable

tweet at 12:49pm: Fed's Powell: - Will Take Certainly Into Next Year to Get Down Close to 2% - The Labor Market is Strong Because the Economy is Strong - Good That Disinflation Has Begun Without Damage to Jobs Market tweet at 12:50pm: Fed's Powell: - There is Now a Shortage of Workers, Feels More Structural Than Cyclical - The Pandemic Has Left a Lasting Market on Labor Supply in the U.S., Shortage Feels "Structural" - Right Now the Labor Market is at Least at Maximum Employment, if Not Beyond tweet at 12:53pm: Fed's Powell: - Big Part of Inflation Is Related to Pandemic Itself - Have Not Put A Dollar Number On A Balance Sheet Target - A "Couple of Years" Before Fed Nears End of Balance Sheet Decline tweet at 12:57pm: Fed’s Powell: - No One Should Think Fed Can Step in in Debt-Default Case - Not Looking For Any Changes to Federal Reserve Act - Fed System Institutionalizes Diversity of Thought - Ethics Rules Are Best in Class for Institution Like Fed tweet at 12:59pm: FED'S POWELL: THE FED HAS THE TOOLS TO ACHIEVE ITS 2% TARGET OVER TIME, BUT GLOBAL EVENTS INFLUENCE INFLATION.